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Salary Payments in China

What date does the law specify salary must be paid in China?

In China, the law does not specify an exact date by which salary must be paid. However, it mandates that the payment cycle for employees should not exceed 1 month. For part-time employees, the wage payment cycle should not exceed 15 days.

How is salary calculated and what components does it consist of in China?

Salary calculation in China consists of the following components:

  • Basic pay
  • Fixed recurring allowances (if any)

Is there a legal obligation to pay salaries in the same month in China?

In China, there is a general expectation that salaries should be paid within the same month they are earned.

How many salary payments are made per year in China?

There are 12 salary payments made per year in China. The pay date is the last working day of each month.

Is salary payment monthly and is payment standard at the end of the month in China?

In China, wages are paid monthly to employees.

Should the employment agreement specify salary in monthly or annual amounts in China?

In China, the employment agreement typically specifies the salary in monthly base pay amounts.

What tax and social security obligations do employees have in China?

Taxable income in China includes all income derived by an individual from employment such as salary, wages, bonuses, allowances, subsidies, and stock and securities subscription rights. Employee wages and salaries are taxed on a progressive system with rates ranging from 3% to 45%.

What are the details of the customary bonuses, including the 13th or 14th-month salary, and when are these payments typically made in China?

In China, many companies choose to provide a 13th-month salary as a bonus, although it is not mandated by law. Typically, this bonus is disbursed during the month of the Chinese New Year or Spring Holiday.

What is the minimum wage information in China?

The minimum wage rate in China is determined based on an assessment of several factors. For a comprehensive understanding of the monthly and hourly minimum wage standards, please refer to the Minimum Wage Calculation Method outlined in the Regulations of the Ministry of Human Resources and Social Security.

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